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International club of banks backs Coima in Milan

Banks from Italy, France and the Netherlands have participated in a financing of several properties.

Coima RES, the Italian real estate investment trust founded in 2015, has closed a financing deal with a four-bank club to put debt in place against a portfolio of properties in Milan.

Italy’s Banca IMI and UniCredit, French bank BNP Paribas and Dutch lender ING Bank are the lenders in the deal. The mix of banks providing debt demonstrates that Italy’s domestic lenders, as well as banks from other European countries with pan-European lending mandates, are prepared to offer debt finance against Italy’s most prime properties.

In the deal, the banks have provided €70 million of new debt against two assets; the 10-storey Tocqueville office building, which it bought for around €56 million in May, and Monte Rosa, an office complex bought for €57 million bought with cash last October.

The five-year loan agreement is priced at an all-in cost of 1.93 percent.

Coima also agreed a two-year extension to a €149.3 million loan related to the Vodafone Village office campus in the city, as well as a portfolio of Deutsche Bank branches located across north and central Italy. The refinancing has been agreed with the same pool of banks, raising the facility’s maturity to five years.

The deal extends Coima’s average weighted debt maturity from three to five years, with the average all-in cost of debt remaining below 2 percent. The firm is aiming to increase the portion of hedged debt to above 80 percent of total debt, from around 74 percent now.

“Having been able to confirm our attractive financing conditions while extending the overall debt maturity validates the prime quality of our underlying properties, our consolidated collaboration with leading banking institutions and the resilience of the Milan real estate market,” said Manfredi Catella, founder and CEO of the firm.